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Application of Multi-Criteria Decision Making Using Fuzzy-Topsis in Drug Distribution Center Location Selection Thummamateta

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Application of Multi-Criteria Decision Making Using Fuzzy-Topsis in Drug Distribution Center Location Selection Thummamateta APPLICATION OF MULTI-CRITERIA DECISION MAKING USING FUZZY-TOPSIS IN DRUG DISTRIBUTION CENTER LOCATION SELECTION THUMMAMATETA TREEVIROTMONGKOL A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ENGINEERING (INDUSTRIAL ENGINEEERING) FACULTY OF GRADUATE STUDIES MAHIDOL UNIVERSITY 2013 COPYRIGHT OF MAHIDOL UNIVERSITY Thesis entitled APPLICATION OF MULTI-CRITERIA DECISION MAKING USING FUZZY-TOPSIS IN DRUG DISTRIBUTION CENTER LOCATION SELECTION ….……………………………………… Miss Thummamateta Treevirotmongkol Candidate ….……………………………………… Lect. Jirapan Liangrokapart, Ph.D. Major advisor ...……………………………………….. Lect. Kiattisak Sritrakulchai, Ph.D. Co-advisor .....……………………………………… Lect. Mongkol Thianwiboon, Ph.D. Co-advisor ..…...………………………………........ ใ …..…...………………………………........ Prof. Banchong Mahaisavariya, Asst. Prof. Thanakorn Naenna, Ph.D. M.D., Dip. Thai Board of Orthopedics Program Director Dean Master of Engineering Program in Faculty of Graduate Studies Industrial Engineering Mahidol University Faculty of Engineering, Mahidol University Thesis entitled APPLICATION OF MULTI-CRITERIA DECISION MAKING USING FUZZY-TOPSIS IN DRUG DISTRIBUTION CENTER LOCATION SELECTION was submitted to the Faculty of Graduate Studies, Mahidol University for the degree of Master of Engineering (Industrial Engineering) on December 13, 2013 .....…………………………………....... Miss Thummamateta Treevirotmongkol Candidate …………………………………...................... .………………………………….......... Lect. Jirapan Liangrokapart, Ph.D. Capt. Kridiwat Suttiwaree, RTN. Member Ph.D. Chair ........………………………………....... ............ ........………………………………….... Lect. Kiattisak Sritrakulchai, Ph.D. Lect. Mongkol Thianwiboon, Ph.D. Member Member …………………………………........... ...... .. .. ........………………………………....... Prof. Banchong Mahaisavariya, Lect. Worawit Israngkul, M.S. M.D., Dip. Thai Board of Orthopedics Dean Dean Faculty of Engineering Faculty of Graduate Studies Mahidol University Mahidol University iii ACKNOWLEDGEMENTS My thesis would be able achieve with advice and support from many person. I wish to express my sincere appreciation to my major advisor, Dr. Jirapan Liangrokapart. She spent her precious time to suggest me and continued assist throughout this study. I would like to thank Dr . Kiattisak Sritrakulchai , Dr. Mongkol Thianwiboon and Capt.Dr.Kridiwat Suttiwaree. They suggested the importance in this research and support as my advising committee. Besides, I would like to thank all experts. They give the opinions in drug distribution center criteria. I will remember their kindness. Finally, I wish to acknowledge my family, especially my father and mother, for their love, encouragement, understanding and financial supporting along thesis study. Thummamateta Treevirotmongkol Fac. of Grad. Studies, Mahidol Univ. Thesis / iv APPLICATION OF MULTI-CRITERIA DECISION MAKING USING FUZZY-TOPSIS IN DRUG DISTRIBUTION CENTER LOCATION SELECTION THUMMAMATETA TREEVIROTMONGKOL 5337533 EGIE / M M.Eng. (INDUSTRIAL ENGINEERING) THESIS ADVISORY COMMITTEE: JIRAPAN LIANGROKAPART, Ph.D., KIATTISAK SRITRAKULCHAI, Ph.D., MONGKOL THIANWIBOON, Ph.D. ABSTRACT Due to the 2011 flood crisis in Thailand, a number of drug manufacturers were inundated with flood water for a few months. Some drug manufacturers were not directly impacted by the flooding, but they could not distribute of drug products to their customers due to the transport disruptions. This resulted in a shortage of drugs supplies to many hospitals, especially those in the remote areas of the country. The purpose of this research is to identify the essential criteria for drug supply distribution; and determine and propose the best district in Bangkok for establishing a drug distribution center that will be able to operate during a flood crisis. The 15 criteria were finalized, and nine experts were asked to rate the criteria. The 50 districts were evaluated using fuzzy TOPSIS in order to select the best location for establishing drug distribution center. Sensitivity analysis was conducted to measure the weight of criteria impacts on the drug distribution center location. However, the result may be different as the weight of each criteria changes. KEY WORDS: DRUG DISTRIBUTION CENTER / LOCATION SELECTION / DISRUPTION / MULTI-CRITERIA DECISION MAKING 220 pages Fac. of Grad. Studies, Mahidol Univ. Thesis / v การประยุกต์ใช้ MULTI-CRITERIA DECISION MAKING ด้วยวิธี FUZZY-TOPSIS ในการเลือก ทีตังศูนย์กระจายยา APPLICATION OF MULTI-CRITERIA DECISION MAKING USING FUZZY-TOPSIS IN DRUG DISTRIBUTION CENTER LOCATION SELECTION ธัมมาเมตตา ตรีวิโรจน์มงคล 5337533 EGIE / M วศ.ม. (วิศวกรรมอุตสาหการ) คณะกรรมการทีปรึกษาวิทยานิพนธ์: จิรพรรณ เลียงโรคาพาธ, Ph.D., เกียรติศักดิ ศรีตระกูลชัย, Ph.D., มงคล เทียนวิบูลย์, Ph.D. บทคัดยอ่ ในปี พ.ศ.2554 เกิดวิกฤตการณ์อุทกภัยในประเทศไทย ผู้ผลิตยาถูกนําท่วมนานหลาย เดือน ผู้ผลิตยาบางรายไมได้รับผลกระทบโดยตรงแต่ ไม่ สามารถกระจายยาได้เนืองจากการขนส่ ่งไม่ สะดวก ซึงส่งผลเกิดการขาดแคลนยาในโรงพยาบาลโดยเฉพาะอยางโรงพยาบาลทีอยู่ ไกล่ งานวิจัยนี จึงมีจุดประสงค์เป็นการค้นหาเกณฑ์ทีสําคัญและเขตทีดีในกรุงเทพมหานครสําหรับจัดตังศูนย์ กระจายยาทีสามารถดําเนินงานในระหวางนํ่ าท่วมได้ เกณฑ์ทีครบถ้วนทัง 15 เกณฑ์และถูกควบคุม โดยผู้เชียวชาญทัง 9 ท่านนํามาใช้ในการให้คะแนน การเลือกทีตังศูนย์กระจายยาจาก 50 เขตใช้วิธี fuzzy TOPSIS ส่วน sensitivity analysis ใช้ในการทดสอบถึงนําหนักเกณฑ์ทีมีผลต่อการเลือกทีตัง อยางไรก่ ตามผลของทีตั็ งมีการเปลียนแปลงเมือนําหนักของเกณฑ์เปลียน 220 หน้า vi CONTENTS Page ACKNOWLEDGEMENTS iii ABSTRACT (ENGLISH) iv ABSTRACT (THAI) v LIST OF TABLES ix LIST OF FIGURES xii CHAPTER I INTRODUCTION 1 1.1 Background and problem 1 1.2 Objectives 5 1.3 Scope of work 5 1.4 Expected results 5 1.5 Organization of the study 5 CHAPTER II LITERATURE REVIEWS 6 2.1 Distribution center 6 2.1.1 Distribution center : the definition 6 2.1.2 The activity of distribution center 6 2.1.2.1 Receiving 6 2.1.2.2 Storing 7 2.1.2.3 Picking 7 2.1.2.4 Dispatching 7 2.1.3 The advantage of distribution center 8 2.2 Hospital supply chain and the role of Drug Distribution Center 8 2.2.1 Hospital supply chain 8 2.2.2 Drug distribution center 9 2.2.2.1 The tasks of drug distribution center 10 2.2.2.2 The advantage of drug distribution center 11 vii CONTENTS (cont.) Page 2.2.2.3 Why is the location selection for establishing 11 drug distribution center important? 2.3 Theory of methodology 11 2.3.1 Multi-Criteria location Problem 11 2.3.2 Fuzzy TOPSIS 13 2.3.3 Why use Fuzzy TOPSIS technique 19 2.4 The Criteria for Location Selection 20 2.4.1 General Criteria 21 2.4.2 Healthcare specific Criteria 24 2.5 The flooding situation in 2011 28 CHAPTER III METHODOLOGY 30 3.1 Research Methodology 30 3.1.1 Identify the Location Selection Criteria 30 3.1.2 Select the potential location 39 3.1.3 Evaluate criteria by experts’ opinion 40 3.1.4 Collect the data of each location 40 3.1.5 Evaluate the location using fuzzy TOPSIS 40 3.1.6 Sensitivity analysis 40 3.1.7 Construct the drug distribution center location selection 40 program CHAPTER IV RESULTS AND DISCUSSION 43 4.1 The evaluated criteria by experts’ opinion 43 4.2 The data of location 45 4.3 The evaluated location using fuzzy TOPSIS 47 4.4 Sensitivity analysis 54 4.5 Drug distribution center location selection program 58 CHAPTER V CONCLUSION 62 viii CONTENTS (cont.) Page REFERENCES 64 APPENDICES 74 Appendix A Number of hospitals by type and province 75 Appendix B The criteria data of 50 districts 78 Appendix C The questionnaire of location for establishing drug 106 distribution center (English) Appendix D The questionnaire of location for establishing drug 109 distribution center (Thai) Appendix E The information of experts 112 Appendix F The evaluation of location from experts’ opinion 113 Appendix G The result of sensitivity analysis 179 Appendix H 2012 International conference on industrial engineering 209 and management systems submitted paper BIOGRAPHY 220 ix LIST OF TABLES Table Page 1.1 Top 10 Natural Disasters in Thailand for the period 1900 to 2012 sorted 3 by numbers of killed 1.2 Top 10 Natural Disasters in Thailand for the period 1900 to 2012 sorted 3 by economic damage costs 2.1 Linguistic variables for alternatives 15 2.2 Linguistic variables for criteria 15 2.3 Comparative analysis of multi-criteria decision making methodologies 20 3.1 General criteria for Location selection from literature review 32 3.2 Specific healthcare criteria for location selection from literature review 34 3.3 The location selection criteria and definition 36 4.1 The final criteria 44 4.2 The linguistic definition of criteria 48 4.3 The ranking of districts for location drug distribution center 54 4.4 The top five ranking of districts for location drug distribution center 55 A.1 The number of hospitals by type and province 75 B.1 The hospitals in 50 districts 78 B.2 The land cost, dust, waste, voice and labor in 50 districts 83 B.3 The station of sky electric train and the underground electric train in 50 85 districts B.4 The number of piers and the bus number in 50 districts 88 B.5 The number of Train station, entrance to expressway and exit to 93 expressway in 50 districts B.6 The drug distributor in 50 districts 94 B.7 The drainage tunnel and the Royally-Initiated Bangkok Flood Dyke in 97 50 districts B.8 The elevation above mean sea level and flood history in 50 districts 101 B.9 The measures to prohibit truck traffic 103 x LIST OF TABLES (cont.) Table Page B.10 The crime in 50 districts 104 E.1 The list of experts 112 F.1 Aggregate fuzzy weights for criteria 113 F.2 National environment and its impact criteria weights for
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